The Stablecoin Landscape Sees a Shakeup: BUSD Slips, TUSD and FDUSD Soar

The stablecoin ecosystem has been buzzing with activity this week, as the once-dominant Binance USD (BUSD) relinquishes its position among the top players. This intriguing shift has been brought about by a reduction in BUSD’s supply, dropping below the 3 billion mark. Meanwhile, in a surprising twist, the stablecoin TrueUSD (TUSD) has experienced a substantial surge in supply, catapulting it to new heights in the stablecoin rankings. These developments come hot on the heels of Binance’s announcement of a gradual phase-out plan for its dollar-pegged token BUSD.

BUSD’s Supply Dwindles Below 3 Billion Mark

Binance USD, fondly known as BUSD, has seen its supply dwindle below the 3 billion threshold. As of September 3, 2023, data from Etherscan reveals that BUSD’s supply has decreased to 2.844 billion BUSD. This once-prominent stablecoin, issued by Paxos, has now slipped to fifth place among the top ten dollar-pegged coins by market valuation. Just three days ago, Binance made a significant announcement that it would gradually phase out BUSD. This decision stemmed from directives issued by U.S. regulators instructing Paxos to halt token issuance for BUSD.

BUSD Falls to Fifth Place Among Stablecoin Leaders; TUSD and FDUSD Supplies Skyrocket in Three Days

While BUSD has witnessed a contraction in its supply, two other stablecoins, namely TrueUSD (TUSD) and First Digital USD (FDUSD), have experienced remarkable growth in the past 72 hours. Interestingly, during the preceding month, nine out of the top ten stablecoins had recorded supply reductions, while FDUSD managed to expand by over 40%. Despite a 3.8% supply contraction in August, TUSD’s supply surged from 2.9 billion to a current 3.438 billion TUSD between August 31 and September 3. This remarkable surge equates to an impressive 18.55% increase in just three days. According to Nansen analytics, Binance holds approximately 2.782 billion TUSD.

Furthermore, the supply of the stablecoin First Digital USD (FDUSD) stood at 327 million on August 31, 2023. However, Etherscan data now indicates that the supply has grown to a substantial 382,548,919 FDUSD. Digging deeper into the statistics from September 3 reveals that Binance controls an overwhelming 99.4397% of the FDUSD supply. Even the top six wallets, collectively representing 84.2% of the entire BUSD supply, are categorized as Binance-controlled wallets. Binance’s influence extends to a significant portion of three crucial stablecoins: BUSD, TUSD, and FDUSD.

The reserves of these three stablecoins, all nestled within the confines of the crypto exchange giant Binance, accumulate to a staggering value of $6.664 billion. Additionally, according to Nansen analytics, out of the total circulating 82.89 billion Tether (USDT), Binance holds a considerable 18.10 billion USDT. This implies that Binance, a dominant force in trading volume, commands a notable 21.83% of the circulating Tether supply. When looking at these stablecoins collectively, their combined holdings represent $24.764 billion of Binance’s $56.04 billion crypto reserves. This signifies that the quartet of dollar-pegged tokens constitutes a substantial 44.18% of the trading platform’s entire asset balance.

Implications of the Stablecoin Shake-Up

The shifting sands of the stablecoin landscape underscore the evolving dynamics within the cryptocurrency realm. As BUSD recedes, TUSD and FDUSD rise, with Binance’s firm grip extending to a significant share of these assets. The implications of these developments in the world of stablecoins are bound to reverberate throughout the crypto industry, as market players adjust to the changing ranks and dynamics. The crypto world is in a state of constant flux, and staying informed about these shifts is key to navigating this ever-changing landscape.